Billionaire Daniel Sundheim’s Top 5 Stock Picks

Below are the billionaire Daniel Sundheim’s Top 5 Stock Picks. For a comprehensive list please see Billionaire Daniel Sundheim’s Top 10 Stock Picks.

5. Expedia Group, Inc. (NASDAQ: EXPE)

Online travel company Expedia Group, Inc. (NASDAQ: EXPE) has been gaining billionaire Daniel Sundheim’s confidence over the past few quarters. D1 first initiated a position in Expedia during the second quarter of 2020 and added to the existing position during the September quarter.  Online travel company currently account for 4.98% of the overall portfolio. Shares of Expedia soared 60% in the last six months.

Distillate Capital also looks optimistic over the cash position of the online travel company to face short term challenges. Distillate Capital highlighted a few stocks in an investor’s letter, including Expedia Group. Here is what Distillate Capital said:

“The biggest addition by weight in the rebalance was Expedia (EXPE), the travel company. While it is clear that the company faces a very challenging near-term environment for travel, the roughly 55% fall in the company’s share price has created a potentially very attractive longer-term opportunity. Against a market cap of just under $8 billion, the company has total debt of around $4.9 billion but offsetting cash of around $4.6 billion, which should help it to withstand near-term challenges. Looking forward, the company is projected to generate well over $1.5 billion of free cash flow per year, which gives it an extremely attractive valuation. Given that companies in our strategy are weighted on the basis of their normalized cash flows, the disconnect between the steep price decline and more stable normalized free cash flows drives a substantial increase in the position weight.”

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